Benefit from direct claim settlement for holders of MTPL contracts

Stanisław Garstka
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Stanisław Garstka: Ubezpieczeniowy Fundusz Gwarancyjny

Collegium of Economic Analysis Annals, 2015, issue 37, 183-198

Abstract: Polish insurance companies introduced the direct claim settlement (DCS) related to MTPL insurance into their offer and have organised an information campaign which highlights two main slogans. The first one evokes the benefit for the customer due to the access to such an opportunity. The second one refers to a shift in the competition on the MTPL insurance market, which will now be based on quality instead of price. It implies that the insured will be ready to pay more for better service in the form of DCS. The article presents DCS from the perspective of the insurer and the insured. The presented model includes only two insurance companies – one offering DCS and one not offering DCS. The aim of the article is to verify the hypothesis of the customer’s benefiting from DCS and the shift from price- to quality-based market competition. Moreover, the paper looks for the conditions that need to be met to provide benefits for the customer who chooses an insurer offering MTPL insurance linked with DCS services.

Keywords: direct claim settlement; game theory; customer profit (search for similar items in EconPapers)
Date: 2015
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